Location may be everything for businesses, as conventional wisdom dictates. But with several factors making finding a suitable location for business harder these days, entrepreneurs need to be more creative and be ready to improvise, depending on the obstacles they face.
British billionaire and Founder of the Virgin Group, Richard Branson, in responding to the question of a reader on Entrepreneur.com, who wants to establish a cybercafé in his village, gave five things to consider when setting up a shop.
What type of business?
Before you choose a location for your business, you have to consider the type of business you want to venture into. Branson takes us back to when he was about to set up his music business, Virgin Records. “When we were preparing to open our first Virgin Records store in the early 1970s, my friends and I really had to think on our feet – so to speak! We knew that our business would depend on foot traffic, so we started looking for locations in Central London,” he said.
The record label grew in leaps and bounds, with Branson selling it for $1 billion over 20 years ago. But it all started with choosing the right place to set up shop.
Oldfield and Branson in the studio in 1973
Think of your prospective customers
The kind of customers you are expecting must determine where your business is located and how your shop appears. Responding to the question of the reader, who wants advice on where to locate a new cybercafe in his village or in a nearby town, Branson wrote; “In your case, when you are searching for a location for your cybercafe, you need to think about whether your customers will be using the computers and Internet connectivity for short periods or long, and why. Are they students or professionals or members of another group? Will they need quiet, or will the hum of a busy cafe suit them better? Then you’ll need to find a location that these customers can easily get to.”
“Don’t just follow conventional ideas in your industry”
No one has a book of business laws that everyone should follow. Even if there was any, no successful entrepreneur follows rules, they make theirs. Conventional ideas in the industry may be good, but they do not guarantee success. Things change faster than these ideas, you therefore have to ensure your business evolves with trends. So Branson advises, “don’t just follow conventional ideas in your industry, but ask yourself and, if you can, some of your potential customers, what they need and how you can help them best.”
Don’t think about the challenges faced in the ‘perfect location’
You might have found a location that seemed perfect after you have considered the type of business and the kind of prospective customers, but it does not mean it’s smooth sailing from there. There are challenges that your business may face that will make you question your decisions.
“It’s possible that you’ll have to set up shop in a space that poses some challenges that you’ll have to overcome,” wrote Branson. “Back in the ’70s, my friends and I were very happy with our free space on Oxford Street [location of Virgin Records], but we did need to draw people’s attention to it because it was on the second floor. We handed out leaflets and found ways to create a buzz on the street below, in order to get people to go up the stairs.”
The British entrepreneur adds; “Businesses that can’t find ways to get people to come in don’t survive for long, so it’s best to tackle such problems head-on: Talk about them with your staff and build the solutions into your workday.”
Ensure terrific Customer Service, you need to make them come back
“Whatever location you choose, remember that this will be the foundation for you to create a memorable experience for your customers, which may be what will keep them coming back. Next, you need to make sure that your customer service is terrific, your employees are happy, that you are giving back to your community, and all the other things that will make your business special. Location is just one piece in the jigsaw puzzle of success — make sure that you account for all the pieces,” Branson wrote.
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